Casino operators have been awaiting a green light from Mexican legislators for more than a decade, to no avail. In the meantime, in the grey area surrounding other gambling operations, the electronic bingo machines known as yaks are proliferating and an estimated 70,000 slot machines are functioning illegally.

In June last year the outgoing Minister of the Interior controversially authorised 130 licences for betting shops and remote gambling permits, including 65 to media giant Televisa. A new gambling law is still at the tortuous discussion stage in the legislature, with no visible signs that the issue will be resolved anytime soon.

In a report from The Brownsville Herald, the vagaries of Mexico’s gambling scenario are once again highlighted. Despite recent reports that US businessman James Vann was running Viva Las Vegas slot machine venues in Matamoros and Nuevo Progreso, just across the border from Brownsville, it now appears that neither operation is open. The first Viva Las Vegas, in Nuevo Progreso, is presently closed for lack of a transformer according to the newspaper report. The second Viva Las Vegas in Matamoros also has electrical problems and has missed it scheduled debut.

The local municipality is not sure where a licence to operate was obtained, if it was. Investigations into the matter have now begun. Vann has reportedly commented that legalities are always difficult. At present the prospective gamblers must wait until the situation is sorted out – much as the gaming industry awaits clear legal guidelines. Until this happens illegal operators will continue to move billions of untraceable dollars each year.

As the Mexican Radio Formula said last year, “These illegal businesses have become a major source of income for corrupt authorities that, under the halo of defending the morals and well-being of the public, inhibit the legitimate collection of taxes - all within the letter of the law.” (E-08.24.06)

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